THE  NEW-YORIv  CENTRAL  RAILROAD  COMPANY. 


SYSTEM  , | i i \ I 

^ P ':£  [ \}  \ * 

OF 

AUDITING  THE  ACCOUNTS, 


AND  OF 


PURCHASING  THE  SUPPLIES  OF  THE  COMPANY, 

AND 

PLAN  FOR  THE  ORGANIZATION 


WOOD  DEPARTMENT. 


ALBANY : 


WEED,  PARSONS  AND  COMPANY,  PRINTERS. 

1856. 


Kfi^nn  m It 

, 


5^5-  V- 

N V's'fe  s 

^O^S^s. 


*\vt\jv\g  \m  ft 


THE  NEW-YORK  CENTRAL  RAILROAD  COMPANY. 


At  a meeting  of  the  Board  of  Directors  of 
the  New-York  Central  Railroad 
Company,  held  at  the  Directors’  Room 
in  the  Exchange,  in  the  city  of  Albany, 
on  the  twentieth  day  of  May,  1856  : 

The  Standing  Committee  on  Accounts  sub- 
mitted to  the  Board  a Report  in  writing,  relative 
to  defects  stated  by  the  said  Committee  to  exist 
in  the  present  mode  of  auditing  the  accounts 
and  of  purchasing  the  supplies  of  the  Company, 
and  proposing  certain  changes  in  the  system, 
which  Report  was  accepted  and, ordered  to  be 
placed  on  file  : whereupon,  it  was 


Resolved , That  the  said  Report,  together  with  Regolutior 
he  outlines  of  a plan  for  the  organization  of  aoftheBoard 


^12,05 


i 


2 


wood  department,  as  drafted  by  the  Comptroller, 
and  heretofore  submitted  to  the  Executive  Com- 
mittee, be  referred  to  a Select  Committee,  con- 
sisting of  the  Standing  Committee  on  Accounts, 
and  Messrs.  Faile,  Chedell  and  Schoolcraft, 
with  power  to  perfect  and  put  in  operation  a 
general  system  of  auditing  the  accounts  and 
of  purchasing  the  supplies  of  the  Company,  and 
a plan  for  the  organization  of  a wood  depart- 
ment, and  that  the  said  Committee  be  authorized 
to  make  such  appointments  as  the  system  adopt- 
ed by  them  may  require. 

[A  copy.] 

Gilbert  L.  Wilson, 

Secretary . 


REPORT. 


In  pursuance  of  the  authority  vested  in  the 
Special  Committee,  appointed  by  the  Board  of 
Directors  of  the  New- York  Central  Railroad 
Company,  by  a resolution  passed  on  the  20th 
day  of  May,  1856,  of  which  annexed  is  a copy, 
the  said  Committee  met  at  the  room  of  the 
Directors  of  said  Company,  in  the  Exchange  in 
the  city  of  Albany,  on  the  30th  day  of  May, 

1856,  and  agreed  upon  the  following  general 
system  of  auditing  the  accounts  and  of  pur- 
chasing the  supplies  of  the  Company,  and  plan 
for  the  organization  of  a wood  department. 

1.  The  office  of  Auditor  is  hereby  abolished  Office  of 

J Auditor 

from  and  after  the  1st  day  of  July  next.  abolished. 

2.  In  addition  to  the  powers  and  duties  of  the  Powers  and 
Comptroller,  he  shall  possess  all  the  powers  and  ferred  on1 
perform  all  the  duties  now  possessed  and  per-  Comptloller- 
formed  by  the  Auditor. 


4 


Money, 
how  paid  by 
Treasurer. 


Exceptions. 


Comptrol- 
ler’s requisi- 
tion, when 
to  be  drawn. 


Auditing  of 
accounts. 


3.  No  money  shall  be  paid  or  advanced  by 
the  Treasurer,  other  than  the  expenses  of  the 
Treasurer’s  department,  without  the  requisition 
of  the  Comptroller  therefor,  except  such  as 
may  be  required  to  meet  the  permanent  obliga- 
tions of  the  Company,  and  except  also  such 
other  payments  as  may  be  directed,  from  time 
to  time,  by  the  Board  of  Directors  or  the  Ex- 
ecutive Committee.  The  Comptroller  shall 
not  draw  any  requisition  on  the  Treasurer,  for 
the  payment  of  any  money  or  the  acceptance 
of  any  draft,  unless  the  bills,  vouchers  and  ac- 
counts therefor  shall  have  been  first  audited 
and  allowed  by  the  said  Comptroller,  in  con- 
juction  with  one  or  more  members  of  the  Com- 
mittee on  Accounts  appointed  by  the  Board, 
which  Committee  shall  meet  with  the  said 
Comptroller  on  the  second  Thursday  of  each 
month  for  that  purpose,  and  who  shall  make 
out  two  certificates  showing  the  amount  of 
money  required  by  each  Paymaster  for  the  ex- 
penditures of  the  previous  month,  one  of  which 
shall  be  delivered  to  the  Treasurer  and  another 
to  the  Paymaster  with  a requisition  upon  the 
Treasuier,  to  pay  the  amount  thereof  to  the 
said  Paymaster.  No  requisition  shall  be  made 
by  the  Comptroller  upon  the  Treasurer,  with- 
out being  accompanied  by  a statement  of  the 
names  of  the  persons  to  whom  the  moneys 
called  for  by  the  said  requisition  are  to  be  paid, 


5 


and  the  amount  to  be  paid  to  each  person 
respectively.  But  requisitions  may  be  made  by  Exception 
the  Comptroller  upon  the  Treasurer  for  suffi- 
cient monies  to  pay  for  contingencies,  upon 
estimates  furnished  to,  and  approved  by  the 
Comptroller  and  one  or  more  members  of  said 
Committee  on  Accounts,  and  also  for  any  pur- 
chases made  and  duly  certified  by  the  Commit- 
tee on  Supplies,  and  for  acceptances  required 
for  such  purchases. 

There  shall  be  three  officers  known  as  Pay-  Paymasters 
masters,  one  on  each  of  the  following  divisions 
of  the  Company’s  road  : First  Division.  That 
part  of  the  road  east  of  Syracuse  ; Second  Divi- 
sion. That  part  of  the  road  between  Syracuse 
and  Rochester;  Third  Division.  That  part  of 
the  road  west  of  Rochester.  Their  appointment 
shall  be  made  by  the  Board  of  Directors  or  the 
Executive  Committee,  and  they  shall  possess 
the  powers  and  perform  the  duties  mentioned  in 
the  tenth  by-law  of  the  Company ; but  the  said 
Paymasters  shall  pay  no  money,  save  for  bills 
or  accounts  which  shall  have  first  been  audited 
and  allowed  by  the  Comptroller,  and  one  or 
more  members  of  the  Committee  on  Accounts, 
as  herein  provided,  except  in  cases  where  the 
Comptroller  may  give  an  order  to  the  Paymaster 
to  pay  the  wages  of  employees  leaving  the  ser- 
vice of  the  Company,  or  discharged  therefrom. 


6 


Reports  of  4.  The  foremen  of  all  shops  and  of  each  sec- 

necessary  # # L 

supplies.  tion  of  track  repairs,  and  of  every  department, 
shall  report  monthly  in  writing,  to  their  respec- 
tive Assistant  Superintendents,  such  supplies  as 
they  will  require  for  the  ensuing  month,  speci- 
fying, as  near  as  may  be,  the  purpose  of  such 
supplies.  The  Assistant  Superintendents  shall 
carefully  examine  into  the  necessity  of  such 
supplies,  and  send  such  monthly  reports,  with 
their  respective  certificates  of  approval  or  dis- 
approval, in  whole  or  in  part,  to  the  General 
Superintendent,  who  shall  examine  the  same, 
and  shall  lay  them  all,  with  such  comments  and 
suggestions  as  he  may  deem  proper,  before  a 
Committee  on  Supplies  to  be  selected  from  the 
Board  of  Directors. 

Committee  5.  The  Committee  on  Supplies  shall  consist 
on  Supplies.  r r 

of  three,  by  whom,  or  by  whose  authority  all 

supplies  shall  be  purchased.  The  said  Com- 
mittee shall  consist  of  Edward  G.  Faile,  John 
L.  Schoolcraft  and  Joseph  Field,  who  shall 
hold  their  places  during  the  pleasure  of  the 
Board  of  Directors,  and  until  their  places  are 
supplied  by  others,  and  any  vacancy  in  said 
Committee  shall  be  filled  by  the  Board  of  Di- 
rectors, by  ballot. 

Contracts  for  6.  All  contracts  for  the  supplies  of  articles  to 
supplies.  . r r 

be  delivered  in  the  future,  shall  be  in  writing, 


7 


and  no  purchase  shall  be  made  without  an  in- 
voice, or  bill  of  sale  being  made,  in  detail,  at  the 
time  of  the  purchase,  and  stating  the  place  of 
delivery. 

7.  The  Committee  on  Supplies  shall  keep  Records  and 

r * 1 reports  of 

records  of  all  their  transactions,  and  shall,  once  Committee 

on  Supplies 

in  each  quarter,  place  before  the  Board  of  Di- 
rectors, a detailed  report  of  all  their  purchases, 
showing  the  amount  of  purchases,  dates,  places  of 
delivery,  names  of  persons  from  whom  they 
have  purchased,  prices  paid,  the  articles  and 
description  of  articles  purchased. 

8.  The  Committee  on  Supplies  shall  keep  Oher  duties 

rr  r of  Commit- 

their  records  in  the  office  of  the  Comptroller,  tee. 

and  shall  also  file  with  the  Comptroller  the  fore- 
mens’ monthly  reports  of  necessary  supplies, 
mentioned  in  article  fourth,  together  with  the 
Assistant  Superintendents’  certificates  of  appro- 
val or  disapproval,  all  of  which  shall  be  sub- 
mitted to  the  inspection  of  the  Committee  on 
Accounts. 

9.  Whenever  any  emergency  shall  arise  under  Immediate 

* . purchases. 

which  the  Superintendent  or  Assistant  Super- 
intendent, or  heads  of  other  departments,  shall 
find  it  necessary  to  make  immediate  purchases 
without  awaiting  the  action  of  the  Committee 
on  Supplies,  they  are  authorized  to  make  such 


8 


Depot  for 
supplies. 


purchases;  but  shall,  as  soon  thereafter  as  pos- 
sible, report  the  same  to  the  Committee  on 
Supplies,  together  with  a statement  of  the  cir- 
cumstances under  which  said  purchases  were 
made,  which  purchases  may  be  approved  by 
the  said  Committee,  and  be  so  certified  by  them 
to  the  Comptroller. 

10.  The  Committee  on  Supplies  are  authorized 
to  employ  such  assistance  as  they  shall  deem 
necessary  to  carry  out  the  objects  of  their  ap- 
pointment, and  also  to  establish  a depot  for  the 
storage,  care  and  delivery  of  supplies,  for  the 
use  of  the  Company. 


Assistant  H.  The  Assistant  Superintendent  upon  each 
dents^o^re-  division  shall  make  a report  monthly  to  the 
port*  Comptroller,  in  such  form  as  may  be  prescribed 
by  him,  of  the  employees  upon  his  di\ision,  the 
nature  of  their  services,  and  their  compensation 
respectively. 


WOOD  DEPARTMENT. 

Wood  Agent  1.  There  shall  be  a department  for  the  pur- 

and  Inspec-  . _ . . n 

tor  and  Mea- chase,  measurement  and  inspection  of  wood, 

Wood.  which  shall  be  under  the  charge  of  two  persons, 

both  of  whom  shall  be  appointed  by  the  Board 

of  Directors,  one  of  whom  shall  be  designated 

the  Wood  Agent,  and  the  other  the  Inspector 

and  Measurer  of  Wood. 


9 


2.  The  Wood  Agent  shall  have  authority  to  Powers  and 
make  and  to  cause  to  be  made  all  purchases  of 
wood  required  by  the  Company  for  fuel.  The 
Inspector  and  Measurer  of  Wood  shall  inspect 
all  wood  purchased  for  fuel,  and  shall  measure 
or  cause  the  same  to  be  measured.  The  said 
Wood  Agent  and  Inspector  and  Measurer  of 
Wood  may  employ  such  assistance  as  the  per- 
formance of  their  respective  duties  may  render 
necessary. 


3.  All  contracts  for  the  purchase  of  wood  Contracts  to 

r be  in  writing 

shall  be  in  writing,  and  be  approved  by  the  recor- 
Wood  Agent,  and  when  made  shall  be  forward- 
ed or  delivered  to  the  Comptroller,  to  be  re- 
corded by  him  in  books,  on  the  margin  of  which 
shall  be  minuted  and  carried  forward  the 
amount  of  wood  purchased  up  to  that  date  in 
that  fiscal  year. 

4*  At  the  time  of  the  making  of  such  record,  Evidence  of 

°  5 *  7 record  to  be 

the  contract  itself  shall  have  endorsed  thereon  endorsed  on 

contracts. 

the  page  and  date  of  its  record,  and  as  soon 
thereafter  as  conveniently  may  be,  shall  be 
delivered  to  the  Inspector  and  Measurer  of 
Wood. 

5.  No  wood  shall  be  inspected  or  measured,  inspection 

r and  mea- 

unless  the  Measurer  or  his  assistant  shall  have,  surement. 
at  the  time,  in  his  possession,  a written  contract 
therefor,  duly  recorded  in  the  Wood  Book,  with 


10 


the  date  arid  page  of  the  record  endorsed  there- 
on. » 

Accounts,  6-  No  bill  for  wood  shall  be  audited  until  the 
howjmdi-  orjgina]  contract  therefor  shall  have  been  re- 
turned, with  a certificate  of  inspection  and  mea- 
surement, by  the  Inspector  and  Measurer,  to 
the  Comptroller,  unless  said  contract  shall  have 
been  only  partially  fulfilled,  in  which  case  the 
Inspector  may  send  to  the  Comptroller  a copy 
thereof,  stating  the  page  and  date  of  the  record 
of  the  original,  and  also  the  amount  of  wood 
delivered  and  paid  for,  on  the  original  contract, 
up  to  that  date. 

Restrictions  7.  No  wood  shall  be  bought  as  mixed.  No 
onpurcim  contraet  sha]]  made  for  wood  in  the  tree;  and 

no  payments  on  wood  contracts  by  way  of  esti- 
mates or  advances  shall  be  made  without  the 
permission  of  the  Board. 

Measure-  8.  All  the  wood,  sawed  and  unsawed,  which 
woodon  belongs  to  the  Company,  shall  be  measured  in 
the  month  of  September  in  each  year,  and  the 
amount  thereof,  together  with  the  amount  found 
at  each  station,  shall  be  submitted  to  the 
Board,  on  the  first  Tuesday  of  October  in  each 
year. 

Return  of  9.  Whenever  any  contract,  or  copy  of  con- 
Comptroller,  tract,  shall  be  returned  by  the  Measurer  to  the 
Comptroller,  the  Comptroller  shall  note  on  the 


11 


Record  Book  the  extent  to  which  said  contract 
has  been  fulfilled. 

10,  The  Comptroller  shall,  on  the  first  Tues-  Report  by 

r , . Comptroller. 

day  of  October,  January  and  April,  in  each 
year,  make  out  a full  written  statement  giving 
the  name  of  each  Wood  Contractor,  his  resi- 
dence, the  date  of  his  contract,  the  number  of 
cords  and  kind  of  wood  contracted  for,  its  price 
and  place  of  delivery,  which  statement  shall  be 
submitted  to  the  Directors  of  the  Company  at 
their  next  meeting  held  thereafter. 

11.  All  vouchers  for  wood  must  be  accom- Vouchers- 
earned  by  the  certificate  of  the  Measurer  who 

has  superintended  the  delivery  and  measurement 
thereof,  as  to  the  actual  measurement,  delivery, 
quality  and  kind  of  wood  included  in  the 
voucher,  and  under  what  contract,  and  when 
and  where  the  same  was  delivered. 

[Signed.] 

RUSSELL  SAGE, 

JOHN  F.  SEYMOUR, 

SCHUYLER  LIVINGSTON, 

JOHN  L.  SCHOOLCRAFT, 

JOHN  H.  CHEDELL, 

EDWARD  G.  FAILE. 


' 


i 


